>>compare their valuations:
Sales Earnings Market Cap Shrs O/S
----- -------- ---------- --------
CSCO $12,154 $1,947 278.6 BN 3,300
MSFT 20,938 7,740 460.2 5,160
INTC 28,761 6,981 255.8 3,340
IBM 88,497 7,596 170.6 1,800
QCOM 3,937 178 58.3 160
If you believe, as I do, in the Qualcomm story--and you
must, as a Gorilla investor!--then the Q remains
undervalued. <<
John,
I am a big believer in QCOM, and I agree that QCOM, as a
young gorilla, is undervalued, but I think the source of
that undervaluation lies with their projected ability to
grow, not in the numbers above. The above numbers show that
CSCO has more than 10 times the earnings of QCOM yet only 5
times the market cap. MSFT has 40 times the earnings of
QCOM and its market cap is only 8 times higher. IBM also
has 40 times more earnings and their market cap is just 3
times higher.
Sorry if I am being argumentative. I have enjoyed your
recent posts, and do hope you keep em coming.
StockHawk |
